The Business Scenario
McDonald’s, my current employer is contemplating on establishing a greater presence in an island country of Kava. The island is in South Pacific. The Island country has an ethic mix of South Pacific tribes, Asians, African, French and Spanish. Over 50% of its population is below 15 years of age. In the island, the major economic activities include petroleum mining, coffee, cocoa, and sugarcane farming amongst others. The region also has a good tourism industry and there is inexpensive quality labor. However, the region faces natural disaster such as tornados, floods and tidal waves amongst other natural calamities. Major helping organizations in the region are government service, community based organizations, and faith based organizations as well as businesses.
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MacDonald Company has assigned me with the responsibility of ascertaining the possibility of establishing its greater presence in the region. This may take various forms based on what is good for the company and the people of Kava. I have been assigned the responsibility of analyzing, synthesizing and prescribing the best decision for the company.
McDonalds is an organization that is primarily concerned with dealing with fast foods and beverages in its restaurants in many parts of the world. The company mission is to be their customers’ favorite place and way to eat. The core value in achieving this mission includes commitment to people by providing opportunities and recognizing talents. It feels obliged to give back to the country whose produce has impacts on it operations and the rest of the world. The company has been invited by the government and other community organizations to help the country in solving some of the social problems in the region. The major reasons why the company is considering establishing its presence in Kava Islands is because what ever happens in the region affects not only the company but also the rest of the world. It has to turn the disasters found in the Island in to opportunities. Second reason is that Mac Donald believes in giving back to the communities around us. This is through helping our customers to build better communities and make the world a better place to live (McDonald, 2011). The third reason is that the government of Kava asked the company to bring its excellent business management culture in the region
Forces involved in Problem Formulation
In the formulation of the problem, several forces are involved. One of these forces is the business interests of Macdonald Company. For the company to establish it operations in this region it has to focus on the specific costs and benefits that it might experience. The organization interests will determine the nature of activities to engage in. the activities that the company undertakes should serve its interest. The other force is the environment and regional location factor. The region has been constantly rocked by natural disasters such as tornados and tsunamis. This is a factor may either influence the decision of the company to operate in the region or not due to the risks involved. The other force is the needs and expectations of the society in the region. In formulating the problem there is a need to consider how the company will affect the society in the region. Is it going to exploit the business opportunity around or is it to involve in charity activities. The problem should be addressed focusing on the strategies that can be beneficial to the society in this region and to the company. In its operations, MacDonald’s believes in giving back to the community in charitable contributions (My Professor.com, n d, pg 7). Therefore, proper decisions need to be put in place on how to deliver this in the region.
Considering the various stakeholders in this problem, the first obstacle may be due to the company employees’ welfare. The region faces natural disaster regularly and this endangers the lives of people living in it. The company will be obliged to mind about the safety of its employees from such disasters. Due to these disasters, it may be possible that few foreign employees will be willing to work in a region that has so many risks and poor living standards. Considering the region population composes 50% is under 15 years, there may be a shortage of human resource. This may be an obstacle for the company establishing its presence in the region
Another obstacle that can arise on the side of the company owners is investment capital. For an organization to expand in a new region, it requires extra capital to invest. This will involve considering the risk of investing in region that has the possibility of property destruction from the natural disasters. Lastly, another observable obstacle may be on the side of the government. The company will require support from the government of Kava in order to operate efficiently in region as a foreign company. Government regulations in the region may be very strict and the company may not afford to operate in the region. The infrastructures in the region such as road networks may also affect the operations.
The Decision Making
Within an organization such as the McDonald’s, effective decision-making will require utilization of the necessary techniques in attaining appropriate solutions. This includes application of critical thinking in obtaining reliable results (Edmund, n d).After analyzing the factors and obstacles involved in this scenario the decisions that can be suitable for the company includes that, it should seek adequate capital to sustain its operations in the Kava Island. Mc Donald should also cooperate with the government in delivering its service to the society in the region. In tackling the human resource issue, the company should consider recruiting employees from the region in order to empower them economically.
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- Edmund, N. (2011). Decision Making.
- McDonald (2011). Mission and Vision. Web.
- My Professor.com (n.d). McDonald’s Corporation: the Past, Present and Future.